The Kannada film industry may undergo a huge overhaul when the Goods and Services Tax (GST) is rolled out in the state of Karnataka.

All Kannada movies that had at least 50% of the movie shot, edited and mixed in the state were not levied any taxes. Other films however had to pay 30% tax but with the new GST set to be the norm from July 1st onwards, all movies will be levied an 18% entertainment tax.

Kannada movie producers are not happy and are planning to take operations out of the state as they are not going to get any benefit by shooting in the state. It could lead to local job loss and the way operations were done so far.